Corruption’s Effect on Shaping Eco-Innovation, Circular Economy, and Human Development
Alin Ionescu, Gabriela Lucia Șipoș, Grațiela Georgiana Noja, Ciprian Șipoș
Keywords:
corruption, eco-innovation, circular economy, competitiveness, human development
Abstract:
Considering that an economic vision oriented solely on profit-making fails to ensure corporate competitiveness along with sustainable development, a transition to a systemic approach of economic, social, and environmental dimensions became imperative. To support human development, the EU countries have not fully succeeded in transitioning to a circular economy and capitalising on the advantages of eco-innovation. This study aims to reveal corruption's impact on shaping eco-innovation, circular economy, and human development, considering a comprehensive panel data set of 270 values covering the 2013–2022 period for the EU-27 countries. Carrying out three-perspective research and a mixed-methods approach applying Principal Component Analysis (PCA) followed by the Structural Equation Model (SEM), this study provides valuable outcomes regarding the baneful corruption effect on human development within EU-27 countries, mediated through eco-innovation and circular economy. Thus, corruption hinders eco-innovation, which, in turn, inhibits countries’ performance in transitioning to the circular economy. Finally, corruption indirectly hampers human development through its straight action on eco-innovation and its collateral effect on the circular economy. Research findings highlight that to support human development in the EU-27 countries, sustained anti-corruption measures must strengthen the competitive advantages achieved by switching towards eco-innovations and the circular economy. The study’s complexity ensures powerful arguments supporting the findings' relevance and originality. It contributes to a comprehensive understanding of the mediated impact of corruption on human development within EU-27 countries, complementing the literature and offering valuable insights and strategies for policymakers and business leaders in sustainable development.
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 Corruption’s Effect on Shaping Eco-Innovation, Circular Economy, and Human Development [PDF file] [Filesize: 658.31 KB]
 10.7441/joc.2026.SI.11
Ionescu, A., Șipoș, G. L., Noja, G. G., & Șipoș, C. (2026). Corruption’s Effect on Shaping Eco-innovation, Circular Economy, and Human Development. Journal of Competitiveness, 18(SI 2), 42–66. https://doi.org/10.7441/joc.2026.SI.11
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